Real estate investment is one of the best investments in the current times provided you choose the right property and flats. Investing in a new house or flat is one of the most crucial decisions of one’s life.
It’s a great investment and it allows you to live in your own home with all the comforts of living in an apartment or condo, but buying a flat isn’t easy. It takes time, money and careful planning. Here are some tips to help you get started:
1. Conduct a thorough Check on the Builder
Choosing a reputed builder is the most important factor to be considered before buying a flat. However, there are a number of benefits when you select a property from reputed real estate developers like you do not have to worry about the quality of construction and you can be assured of timely delivery of your home.
Furthermore, reputed real estate developers usually have a good track record of experience and credibility.
Also, check the past performance of the builder and check whether the property is registered with RERA or not, so you get the right vision for buying the flat.
2. Flat’s Carpet Area
Most people got confused between Built up area and the Carpet area of the flat. A carpet area means an area that can be covered by carpet or net usable area including inner walls.
It is the distance between the inner walls (common areas such as the lift, lobby, etc. are not included under the carpet area).
Whereas the Built up area in your flat or apartment is the carpet area plus the area that is covered by the inner walls and the balcony, don’t confuse in Flat’s Carpet area and Flat’s Build up area.
Before buying a flat, check the Carpet area of the flat and check whether it is built up according to it or not.
3. Map should be Government Approved
Always check the building in which you are buying a flat is Government approved. The Map of the flat should be approved by the government and the authority.
Also, conduct a test whether the flat is made as per the map approved and whether you are not getting scammed by any builder.
Understanding Government policy and other legalities stamp duty, service tax, etc will be extremely handy in making an informed choice of buying a flat.
The stamp duty is usually a percentage of the transaction value levied by the state government, on every registered sale of a flat.
4. Legal Check of Property
Before you seal the final deal, make sure your flat is legally authorised and has legal permission to stand on the plot.
As a homebuyer, there is nothing wrong in checking whether the developer has approvals and NOCs from the Municipal Corporation, legal authorities and other area development authorities for water supply, sewage boards, electricity boards, etc.
Also, make sure the property should be free from any legal disputes and issues. Every bank conducts a legal check on your documents to validate their authenticity before sanctioning a home loan and as a buyer. It gives you confidence that your property has been inspected by experts and your property is legally clear and technically sound.
Also, check on amenities provided in the building and if any additional cost is involved for the use of these amenities. If the building is under construction, confirm a tentative time for completion and enforce a suitable penalty in case of delay and other issues.
Visit the developer’s earlier projects to check the quality of the construction, landscaping and facilities provided by the Builder.
5. Location is the Key
Uttrakhand is one of the fastest growing states in India and the number of full-time working professionals in the city is increasing.
Buying a flat close to commercial and entertainment centers, IT Parks, schools, colleges, grocery shops, hospitals, malls, parks, theatres, etc. plays a vital role in selecting the right flat for you.
Flat’s location not only impacts the market value of the property but also your standard of living. Among these tips for buying a flat, you should remember, your property should have good connectivity to major parts of the city as well as to public and private transportation for living a hassle free life.
6. Builder Buyer Agreement
When you planning for buying a flat or house of your choice, you can book the flat by giving a token amount, in return for which you get an allotment letter. Read carefully that allotment letter and make sure everything is clear in that so you have no doubts about the future.
Then, a tripartite agreement is entered upon between the buyer, the bank and the builder for the rest of the amount to be paid according to it.
This agreement should be read and understood in detail before signing it and also check if there are any hidden charges that are not discussed by the builder.
All the clauses must be read carefully and clearly understood, if any doubts, should be raised at this point itself, Builder Buyer Agreement creates transparency between builder and flat buyer.
The builder is required to pay you a monthly penalty in case you do not receive the flat’s possession within the grace period and additional expenses such as GST, Stamp duty, Home loan possession fee, Registration charges and all other charges should also be kept in mind.
7. Parking Facilities and other Amenities
With the significant increase in the number of vehicle owners, competition for parking spaces is developing. So, to avoid that check parking facilities and other essentials of the flat. Like Commutation and Transportation, Water Supply, Electricity, etc.
8. High Returns on Flat
In case you are buying a flat for the purpose of investment, consider a flat that is near schools and entertainment centers, IT Parks, colleges, grocery shops, hospitals, malls, parks, theatres, etc. They fetch better rental returns and high ROI.
If you are considering a flat for living purposes, then it could be a better decision because flats give you high returns. The average appreciation rate in India is six percent annually for real estate.
You must pay special attention to the resale value of the flat, especially when you are buying the property for investment purpose rather than inhabiting it and planning to sell it sooner or later.
9. Important Documents Required
Sales Deed
A sale deed is basically a legal document that enables the owner of the property to transfer the rights of the property in the name of the buyer. It is a very important document when buying a flat. Until a sale deed is not registered, the buyer can not become the rightful owner of the property according to law.
Allotment Letter
The buyer is allotted this letter by the builder at the time of applying for a home loan, this is the proof that a particular flat is allotted to that individual This letter comprises information related to the down payment made by the buyer to the builder. This assures that the Home loan being asked by the buyer from the bank is reasonable.
Khata Certificate
This certificate is proof that the construction of the property has been done as per the approved plan. It contains all the property details, such as the owner’s details, property size, location, carpet area, built-up area, tax assessment, property identification number and other aspects. Khata Certificate is required at the time of taking a home loan and also during the registration process.
Payment Receipt
The original payment receipt must be obtained from the seller from the builder. It is the proof of payment done by the buyer.
NOC
NOC stands for No Objection Certificate. property buyer requires a NOC certificate from Builder, to ensure that there are no legal tangles/encroachments attached to the property in question.
Rectification Deed
This property document is required to make modifications in the principal clauses if needed.
Copy of Building Plan
An approved building plan by the statutory body must be obtained by the flat buyer for future needs. This document is a confirmation that the construction of the flat is done on legal norms.
10. Construction Standards
Check the quality of construction by evaluating the strength of the structure, the kind of flooring used, window frames, the standard of bathroom fittings and so on, before getting impressed by the decked-out sample of flat.
If you are interested in booking an undeveloped property, check online or, if possible, visit and check the recently built property amenities and other projects of the builder.
To explore more, you can go to the builder’s ongoing projects and do a walkthrough to get a good feel of the builder’s construction style and quality.
If you are interested in buying a property then we have a complete RERA Guide for you, Everything a Home Buyer should know about RERA Act: Guidelines, Benefits and Complaint Process of RERA for a Home Buyer
Conclusion
In conclusion, owning property can be a great investment if done right. Investing in property can help you build wealth and a secure financial future. However, it’s important to make sure you do your due diligence before investing in any property.
Make sure you research the area, the market and the potential return on investment before making any decisions. With the right planning and guidance, you can make the most of your property investments and create a secure financial future.
I hope you get the necessary information. Thank you for taking the time to read. We appreciate your interest and are open to any query and discussion.
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This is exactly what I needed to read today. Thank you!